VaxGen wraps up sale of anthrax assets

VaxGen Inc. finished selling the assets of its anthrax vaccine program for $2 million.

The buyer was Emergent BioSolutions Inc., based in Rockville, Md., led by CEO Fuad El-Hibri. Emergent sells the only FDA-approved anthrax vaccine.

VaxGen, based in South San Francisco, could also get up to $8 million in milestones and royalties if the program goes forward and is successful. Emergent aims to develop the vaccine to meet a request for proposals from the U.S. Department of Health and Human Services, which seeks to stockpile 25 million doses of anthrax vaccine for bioterrorism defense.

VaxGen (OTCBB: VXGN) itself was developing the vaccine under an $877 million government contract, but that deal fell through and the government cancelled it.

Matthew Pfeffer, VaxGen's CFO, left the company April 9 as the company shed about 17 workers following a failed merger with Raven Biotechnologies Inc. He was paid, according to his contract modified on March 28, a lump sum of 99 percent of his salary, which was $300,000 in 2007. He also stood to receive two months salary in addition to the lump sum payment.